31 August 2022
4 min read

Telematics is entering mainstream motor fleet insurance

Pattern AI is the enabler for data-driven insurance solutions offered by telematics providers

Telematics Service Providers (TSPs) gather vast amounts of data to help fleets manage their vehicles and drivers. For many, it’s a dream to monetize this data and discover new business opportunities. Now, thanks to artificial intelligence (AI), that dream is becoming a reality.

Insurance is an obvious next step for TSPs. They already have the data for thousands, if not tens of thousands, of drivers. They know where their customers drive. They know how often their customers drive. They know why and what their customers drive, and they might know how their customers drive. Pattern AI provides them with deeper insights to not only validate, but to price risk incredibly accurately.

Telematics and insurance – the perfect fit

For TSPs, raw GPS data is a potential goldmine, and an under explored opportunity for new product development. Pattern AI can enhance the raw GPS data’s value by quantifying it, grading it, and pricing it. Ultimately this provides a transparent view of the entire customer base. An immediate benefit is a greater insight into driver behavior, safety and sustainability meeting many CSR goals.

Armed with these deeper data insights, TSPs may also choose to explore insurance opportunities. This is made possible by working with an insurance partner to design a competitive, data-driven insurance solution for their target group. It’s a win-win solution. The insurer obtains new fleet customers at speed, whose risk level they already know. The telematics company retains its fleet customers by offering value-add solutions and an attractive accurately priced insurance offer. And the fleet customer benefits from an insurance solution that is tailored to its needs.

Technology is disrupting insurance

We are already seeing the impact of technology on insurance. Tesla is a prime example, and probably the best known. The company offers insurance using real-time driving behavior, with no need for an additional device in the vehicle. Tesla users can therefore make monthly payments based on driving behavior, instead of traditional factors such as age, gender, and claim history.

Thanks to AI, many other insurers are offering behavior-based products. For example, last year Greater Than client Tryg Norway launched Sidekick, a smart car insurance offering for drivers aged 18-30. This provides a more flexible alternative for younger car owners who typically face high insurance costs. This year it has expanded its offering to include EV owners, recognizing that this customer group also suffers from higher insurance costs despite the ecology benefits they deliver to society.

Cutting costs is critical for fleets

The timing is perfect for telematics companies considering entering the insurance market. TSPs’ end customers need to cut costs. And insurance is one of the biggest financial burdens for fleets. Fleet operators are therefore actively seeking ways to save money, and data-driven insurance is an attractive consideration.

Fleets are also under increasing pressure to implement safer, more sustainable operations. Data-driven insurance solutions that incentivize safer driving behaviors are powerful tools to help them achieve this.

Pattern AI is opening new doors for telematics companies

For TSPs, the step into motor insurance can be a simple one. With Greater Than’s support, TSPs can quickly monetize their GPS telematics data. This is because our AI can deliver a deeper layer of insights to verify risk, and assign a precise price to it.

These data insights can enable dynamic TSP-led insurance solutions that recognize safe, eco-friendly driving. A TSP that delivers such a solution adds value to its customers by lowering insurance costs and increasing driver safety. At the same time, the customer relationship is strengthened, and client retention is encouraged. It’s easy to see why insurance is a desirable next step for telematics companies.

Contact Greater Than or book a meeting with me to learn how our AI can monetize your telematics data into new products, including dynamic, data-driven insurance solutions.

How telematics can enhance you insurance offering

Recommended resources

Understanding pattern profiling in driver risk management

Understanding pattern profiling in driver risk management

Harsh acceleration, braking and cornering, as well as speeding, are widely considered the key indicators of driver risk. And, because such driving “events” have become synonymous with the measurement of driver risk, it can be difficult to understand how risk can be analyzed without them.

Read more